Yes I am using this rules (which you described) for H4/D1 timeframe together with Ichimoku chart: above below zero.
BTW there are several rules to use this indicator. I am using this indicator on M5 timeframe with similar way with MTF_AbsoluteStrength indicator.
And for M5 timeframe I am using PriceTrend indicator. Not Momentum.
BTW people may use any indicator to estimate the market condition.
I am almost always on the forum so i am doing the following because of that:
- in the beginning of my every trading day I open Ichimoku templates (H4 and D1 timeframe) just to understand the market condition. And CMO indicator should be used in exact way as you described in this post.
- if I do not have time to trade (because I am looking on this forum for example) I open M5 template every half an hour for example to understand about what it's going on with the price (see image attached).
Just for market condition. Not for trading.
I uploaded many templates for market condition evaluation which i am using sometimes (in Ichimoku thread).
I am testing Firebird with M30 timeframe but sorry I do not have any system for this timeframe to estimate the market condition.
May be, somebody is having something for M30. Or we may construct something for M30 timeframe ...
It may be interesting to compare the market condition evaluation with my testing results. Because it is very attractive to use Firebird in particular market condition and do not use this EA if we feel bad condition for that.
Just an idea ...
Below is a statement for the Firebird Reversed EA. I'm basically letting it trade during the European and US sessions. I close positions when I'm in a profit after or during each session. This is only three days worth of data; but it looks promising. I'll post my results weekly.
I attached simple indicators to the chart for more illustration:
USDCHF and GBPUSD.
These conditions are standard with all mommentum indicators no matter its calculations style.
each time the indicators cross its middle line and continue to rase the price follow upward. When the indicator starts to fall from above the middle line price levels out and may decline but it is not known in advance what it will do. The reverse is true for indicator dropping below the mid point.
Why are these rules so important? Just this, If your are useing a trend indicator (say a moving average) and a mommentum indicator in unision this would be the lowest risk entry as follows;
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